Posted on 08/28/2004 9:17:32 AM PDT by NormsRevenge
SACRAMENTO - The Schwarzenegger administration threw a wrench Friday into California's preparations for the November election by freezing nearly $18 million in federal funds while the state auditor investigates allegations that Secretary of State Kevin Shelley improperly directed government contracts to Democratic allies.
Shelley's office, county election officials and voting-rights groups were alarmed by the surprise announcement, which could delay until after the November election scores of programs to train poll workers, aid non-English-speaking voters and improve disabled access to polling places on Election Day.
``We are very sympathetic with the governor and other people's concerns about how public funds are spent, but we don't think that should impede the release of monies for critical programs,'' said Kathay Feng, voting-rights-project director at the Asian Pacific American Legal Center in Los Angeles.
The Schwarzenegger administration took the action in the wake of revelations, first reported last week in the Mercury News, that Shelley had directed nearly $500,000 in federal Help America Vote Act (HAVA) funds to former campaign workers and Democratic operatives.
Thursday, the Joint Legislative Audit Committee asked the state auditor to launch an investigation of Shelley's spending. Shelley has denied any wrongdoing and vowed to work closely with auditors.
With concerns still swirling around the spending, the state Department of Finance announced late Friday that the Schwarzenegger administration would put an immediate freeze on release of $17.6 million in federal funds until the audit can be completed.
Completion of the audit could take months and drag on past the November election, said State Auditor Elaine Howle, who will oversee the investigation.
(Excerpt) Read more at mercurynews.com ...
Election money off-limits to Shelley
The Schwarzenegger administration Friday halted Secretary of State Kevin Shelley's use of federal election funds at the same time the State Personnel Board launched an investigation of complaints that Shelley is verbally abusive to his staff.
How do I get in on this?
>>>Shelley awarded a $49,000 no-bid contract to Eric Jaye, a political consultant who worked on his 2002 campaign, to develop voter education material. Jaye did not bill the state for his services. A $70,000 contract went to Renne & Holtzman Public Law Group to help Shelley's in-house lawyers handle an investigation into electronic voting machines. Jon Holtzman, one of the firm's partners, has served as an unpaid treasurer to Shelley's political campaign since November.
Two contracts totaling $45,750 went to Clark Lee of Walnut (Los Angeles County), who is a member of the California Democratic Party's state executive board. He also worked as a regional field coordinator for Davis' anti-recall campaign.
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